The European Commission opened an in-depth investigation on Monday 31 January to check whether certain German support measures for DB Cargo comply with EU State aid rules.
DB Cargo is a 100% subsidiary of the State-owned, vertically-integrated German rail operator Deutsche Bahn AG (DB AG). DB Cargo has been persistently loss-making.
The Commission received a complaint alleging that the profit and loss transfer agreement and certain other measures in favour of DB Cargo constituted State aid incompatible with the internal market.
According to the complainant, these measures give DB Cargo an undue selective advantage over its competitors by allowing it to invest in the growth and expansion of its business and in the modernisation of its fleet, despite the fact that it is loss-making and without regard to its profitability or liquidity.
The Commission is concerned that certain measures in favour of DB Cargo may not comply with EU State aid rules and has opened an in-depth investigation into the profit and loss transfer agreement of indefinite duration between DB AG and DB Cargo, under which DB AG has been covering DB Cargo’s losses since 2012, as well as the provision of intra-group services by DB AG to DB Cargo at favourable pricing terms. (Original version in French by Lionel Changeur)